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Trend Topic: Cloud Computing May 5, 2016

Posted by erictong10 in 2016 Trends.
  1. Definition of the trend/technology

The trends to focus on in this post will be the concepts and ideas around cloud computing.  There are three major aspects of cloud computing: Platform as a Service (PaaS), Infrastructure as a Service (IaaS) and Software as a Service (SaaS). Many every day users of computers usually have more interaction with SaaS and IaaS as both of these pertain to things such as software downloading off the internet and saving/backing up data in the cloud. SaaS is known (as stated in the previous sentence) as individual’s ability to install, upgrade and manage software off a server without the need of an actual disk or artifact. This allows individuals to access software with a single click of a button on their computer. IaaS provides individuals with their infrastructure computing needs. This allows individuals to access infrastructure type components such as network and storage in a virtual manner without the need of additional hardware. [1] PaaS is known as the service that allows customers, developers, etc. to develop and execute various web applications without having to maintain the infrastructure typically necessary for these applications. [2] This allows developers and companies to provide software to their customer at a fraction of the cost because of the reduction in responsibility of developing and maintaining the infrastructure components of their development.

  1. Scope of the potential impact in some quantifiable terms

From Forbes magazine, the author mentions, “In 2016, spending on public cloud Infrastructure as a Service hardware and software is forecast to reach $38B, growing to $173B in 2026. SaaS and PaaS portion of cloud hardware and infrastructure software spending are projected to reach $12B in 2016, growing to $55B in 2026.” [4] This is a huge impact in the cloud computing industry as companies are investing their funds in the improvement and development of cloud computing. With this investment, the development and expertise of cloud computing will continue to grow and the security and capabilities of cloud computing will provide the necessary tools for future computing development. Forbes also mentions, “Worldwide Public IT Cloud Service Revenue in 2018 is predicted to be $127B. Managed Services is projected to reach $256B by 2018. Emerging markets are predicted to be 21% of the Worldwide Public IT Cloud Services market by 2018. [4] This shows evidence of the continue adoption of cloud computing from consumers as they begin to become more knowledgeable and comfortable with the product. Just last year, ““The worldwide cloud computing market grew 28% to $110B in revenues in 2015. Synergy Research Group found that public IaaS/PaaS services attained the highest growth rate of 51%, followed by private & hybrid cloud infrastructure services at 45%.“[4] With the growth and adoption of PaaS, the PaaS market is projected to reach $14 billion by 2017. [5] With the continue investment, adoption and growth of cloud computing, cloud computing will continue to have a larger impact in all of our computing needs.

  1. Quantifiable evidence of the growth and current state of the technology/trend

Currently, SaaS has a presence in 77.3% of all organizations as of 2015, which shows the current involvement cloud computing has in different organizations [3]. Being able to obtain and deliver software in an effective and efficient manner is key for many companies to keep development cost low. From Forbes, one thing that was mentioned was that, “In 2015, Amazon Web Services (AWS) generated $7.88B in revenue with Q4 2015, up 69% over last year. VentureBeat’s financial analysis of AWS performance also found AWS profitable, contributing $687M in operating income for the quarter, up $240M from one year earlier.” [4]. Amazon web services is one of the largest cloud computing providers and they were able to see a huge increase in revenue by 69% in a single year which provides that consumers are integrating their daily computing activities and needs to the cloud. An article from Gartner mentions, “Global spending on IaaS is expected to reach almost US$16.5 billion in 2015, an increase of 32.8 percent from 2014, with a compound annual growth rate (CAGR) from 2014 to 2019 forecast at 29.1 percent, according to Gartner’s latest forecast.” [6] Similar to the statements made above in the potential impact, the continuous investment in the improvement and functionality of cloud computing shows the potential many companies see in cloud computing as part of their daily computing infrastructure.

  1. Statement about the importance and impact that includes recommendations/advice.

Cloud computing is going to continue to have a major impact in the way we develop, adopt and utilize computing artifacts. As stated in the above sections, many companies are investing and are going to continue to invest in the development and growth of cloud computing not only for their company, but also for their customers. One component that was in another post that I wrote about cloud computing is understanding the “top inhibitors to cloud adoption”. The article by software strategies mentions, “Top inhibitors to cloud adoption are security (45.2%), regulatory/compliance (36%), privacy (28.7%), lock-in (25.8%) and complexity (23.1%).” [3] These inhibitors should not push individuals or companies away from cloud computing but instead, individuals and companies should address and investigate these inhibitors to understand the capabilities of cloud computing. Understanding the capabilities of cloud computing will allow individuals to maximize their efficiency in the usage of cloud computing and understand ways of how to and how not to use cloud computing.


[1] When to use SaaS, PaaS, and IaaS. (n.d.). Retrieved May 04, 2016, from https://www.computenext.com/blog/when-to-use-saas-paas-and-iaas/

[2] What is Platform as a Service (PaaS)? – Definition from WhatIs.com. (n.d.). Retrieved May 02, 2016, from http://searchcloudcomputing.techtarget.com/definition/Platform-as-a-Service-PaaS

[3] Posts tagged ‘PaaS Forecast’. (n.d.). Retrieved February 09, 2016, from http://softwarestrategiesblog.com/tag/paas-forecast/

[4] Roundup of Cloud Computing Forecast and market estimates 2016. (2016, March 13). Retrieved May 04, 2016, from http://www.forbes.com/sites/louiscolumbus/2016/03/13/roundup-of-cloud-computing-forecasts-and-market-estimates-2016/#3428f96c74b0

[5] Kanaracus, C. (2013). PaaS market to reach $14 billion by 2017, IDC says. Retrieved May 04, 2016, from http://www.infoworld.com/article/2609060/paas/paas-market-to-reach–14-billion-by-2017–idc-says.html

[6] Gartner Says Worldwide Cloud Infrastructure-as-a-Service Spending to Grow 32.8 Percent in 2015. (n.d.). Retrieved May 04, 2016, from http://www.gartner.com/newsroom/id/3055225




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